YC
The Truth About Y Combinator
@ Y Combinator
10/29/22
Takeaways
MS
Michael Seibel
10/29/22
@ Y Combinator
Many founders applying to Y Combinator are unaware of the full extent of the program's offerings, including ongoing support after the initial three-month period.
MS
Michael Seibel
10/29/22
@ Y Combinator
Founders often mistakenly believe that Y Combinator is just a series of online lectures, not realizing they will be assigned a group partner and placed in small sections for personalized support.
MS
Michael Seibel
10/29/22
@ Y Combinator
There's a misconception that Y Combinator operates like a university, but it's actually a product that evolves continuously, unlike traditional educational institutions.
MS
Michael Seibel
10/29/22
@ Y Combinator
A common misconception is that success in startups is solely dependent on the investors involved, but the reality is that founders must drive their own success.
MS
Michael Seibel
10/29/22
@ Y Combinator
Y Combinator provides a unique environment where ambitious founders can access resources and support, but ultimately, the founders themselves must do the work to succeed.
MS
Michael Seibel
10/29/22
@ Y Combinator
Many critics of Y Combinator have never participated in the program, leading to uninformed opinions about its value.
MS
Michael Seibel
10/29/22
@ Y Combinator
It's a myth that you need to be far along in your startup journey to apply to Y Combinator; many successful companies started with just an idea when they applied.
MS
Michael Seibel
10/29/22
@ Y Combinator
The real value of Y Combinator lies in the peer network and the honest feedback from experienced founders, not just in the financial investment.
MS
Michael Seibel
10/29/22
@ Y Combinator
If someone is only criticizing Y Combinator without providing a valid alternative, it raises questions about their credibility and motives.
MS
Michael Seibel
10/29/22
@ Y Combinator
During the recent batch, valuations remained stable, with many companies raising funds at similar levels to previous batches, indicating a healthy investment environment.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
Many founders mistakenly believe their fundraising experience will mirror that of others based on anecdotal evidence, leading to unrealistic expectations about their own fundraising efforts.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
The fundraising landscape is not a uniform market; it's influenced by various factors, and many founders fail to recognize that their situation may differ significantly from others.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
Running an auction during fundraising allows founders to set their own terms, such as valuation and investment amounts, which is a rare opportunity for most early-stage founders who often find themselves begging for money.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
YC companies often receive numerous inbound offers from investors, contrasting with the common experience of founders who typically have to reach out to investors themselves.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
Founders frequently share horror stories about their fundraising experiences before joining YC, highlighting the stark contrast in investor behavior and terms they encounter after participating in YC.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
Many founders are shocked when investors agree to simple terms like signing a SAFE without demanding board seats or pro-rata rights, which contrasts sharply with their previous experiences.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
The venture capital industry often promotes the idea that founders need to raise money immediately, which can lead to poor decision-making and unfavorable terms for founders.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
YC emphasizes that founders do not need to start with external funding to build a successful company; instead, they should focus on creating value and gaining traction first.
YC
Y Combinator Cast
10/29/22
@ Y Combinator
The recent YC batch was remarkable, showcasing the hard work and dedication of the founders, which is a key factor in their success.